The Permanent Portfolio Harry Browne's Long-Term Investment Strategy

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Market uncertainty cannot be eliminated. So rather than attempt to eliminate it, why not embrace it? That is what this book has been designed to do. Inside the Investment Bunker takes readers through Harry Browne's Permanent Portfolio approach, and reveals how it can help investors thrive in today's turbulent markets. This reliable resource also reveals how the Permanent Portfolio can achieve impressive growth while offering powerful protection during uncertain economic conditions, including periods of low and high inflation. Engaging and informative, this practical guide is an essential read for any serious investor.

CRAIG ROWLAND is a serial entrepreneur who has been associated with several technology start-ups, two of which were ultimately purchased by Cisco Systems, Inc. At his last company, Psionic Software, Inc., he was founder, president, and CTO when purchased by Cisco. Another company Rowland was associated with was purchased by 3Com Corporation. He has provided consulting services to other start-up companies in addition to raising millions of dollars in venture capital for his own business.

J. M. LAWSON is an attorney and retirement plan consultant. His practice involves retirement plan design and compliance issues, as well as assisting employers in creating and monitoring retirement plan investment policies and procedures.

Foreword xi

Preface: Life Is Uncertain xv

Acknowledgments xix

CHAPTER 1 What Is the Permanent Portfolio? 1

A Simple Idea 1

A Simple Allocation 3

Simply Great Results 3

CHAPTER 2 The 16 Golden Rules of Financial Safety 5

Rule #1: Your Career Provides Your Wealth 6

Rule #2: Don’t Assume You Can Replace Your Wealth 6

Rule #3: Recognize the Difference between Investing and Speculating 6

Rule #4: No One Can Predict the Future 7

Rule #5: No One Can Time the Market 7

Rule #6: No Trading System Will Work as Well in the Future as It Did in the Past 8

Rule #7: Don’t Use Leverage 8

Rule #8: Don’t Let Anyone Make Your Decisions 9

Rule #9: Don’t Ever Do Anything You Don’t Understand 9

Rule #10: Don’t Depend on Any One Investment, Institution, or Person for Your Safety 10

Rule #11: Create a Bulletproof Portfolio for Protection 11

Rule #12: Speculate Only with Money You Can Afford to Lose 11

Rule #13: Keep Some Assets Outside the Country in which You Live 11

Rule #14: Beware of Tax-Avoidance Schemes 11

Rule #15: Enjoy Yourself with a Budget for Pleasure 12

Rule #16: Whenever You’re in Doubt about a Course of Action, It’s Always Better to Err on the Side of Safety 12